Business news from Ukraine

Business news from Ukraine

UKRAINIAN CABINET MAKES SUBMISSION TO PRESIDENT TO DISMISS VITALI KLITSCHKO FROM POST OF KYIV ADMINISTRATION HEAD

The Cabinet of Ministers of Ukraine has agreed on the dismissal of Head of Kyiv City State Administration Vitali Klitschko.
“We turned to the President’s Office regarding the dismissal of Klitschko,” Honcharuk said at a government meeting on Wednesday.

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UKRAINE’S DELEGATION READY FOR UKRAINE-EU-RUSSIA GAS TALKS IN SEPT

The Ukrainian delegation, led by Minister of Energy and Environmental Protection Oleksiy Orzhel, is ready for trilateral negotiations on the transit of Russian gas in the Ukraine-EU-Russia format in September, the press service of the relevant ministry said, citing the words of the head of the department.
“The Ukrainian delegation, which I will head, is ready to take part in trilateral gas talks this month,” the press service quoted Orzhel as saying.

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LARGE UKRAINIAN PRODUCER OF BUTTER AND CHEESE UKRPRODUCT INCREASES NET PROFIT

The Ukrproduct Group, a large Ukrainian producer of packaged butter and processed cheese, saw GBP 0.74 million of net profit in H1, 2019 that is 1.8 times more than over the same period in 2018.
According to the company’s report posted on the London Stock Exchange, Ukrproduct revenue saw 1.5-fold rise, reaching GBP 22.24 million, and gross profit grew by 1.55 times, up to GBP 1.93 million.
Through the first six months of 2019 operating profit of the company totaled GBP 0.4 million compared with operating loss of GBP 0.19 million in H1 2018.
As at June 30, 2019, the group had total liabilities of GBP 16.8 million against GBP 15.1 million in 2018, net assets and net assets of GBP 1.3 million million with cash balances of GBP 0.2 million.
According to the group, the main drivers of revenue growth were butter, beverages and processed cheese. The Company estimates that Ukrproduct’s butter market share in Ukraine has increased by approximately 3% to 10.1% when comparing H1 2019 with H1 2018, whilst market share in processed cheese and processed cheese products has decreased by approximately 0.3% to 8.5% when comparing H1 2019 with H1 2018.
“However, in the first half of 2019, Ukrproduct became the top exporter of processed cheese in Ukraine. Hard cheese sales decreased by 2%, whilst sales of bulk & packaged spreads increased by 17%,” the group said.
As the group said, sales of kvass beverage improved, driven by an active marketing strategy and the launch of a new product containing natural ingredients of juice and mint.
The most significant portion of the Group’s revenue comes from selling packaged butter and supplementary products, which represented 57.2% in the first half of 2019 and 45.9% in first half of 2018 of total revenue for the relevant periods.
Export sales of Ukrproduct increased due to rising export sales in supplementary products, however, export sales of packaged butter and spreads decreased overall. Skimmed milk products exports continue to decline as a result of worldwide prices being lower than domestic market prices.
The Group continues to expand export sales into non-dairy products: beverages and other food commodities.
Ukrproduct Group produces branded dairy goods (the Nash Molochnyk, Narodny Produkt, Vershkova Dolyna and other trademarks).

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NUMBER OF UNEMPLOYED IN UKRAINE IN 2018-2019

Number of unemployed in Ukraine in 2018-2019

VOLODYMYR-VOLYNSKY POULTRY FARM (EPICURUS BRAND) CALLING TO SIGN PETITION TO BAN FROM USING ANTIBIOTICS IN AGRICULTURE

Private joint-stock company Volodymyr-Volynsky Poultry Farm (Volyn region), part of Openmind Group, calls to sign a petition to ban from using antibiotics in agriculture and refuse applying them posted on the website of the president of Ukraine.
“The worldwide recognized problem of antibiotic resistance is the focus of the WHO [World Health Organization] and leading countries. Experience shows the impossibility of production without the use of antibiotics. It does not require significant investments, but needs serious changes in business processes, standards, as well as internal discipline of companies for events that need to be implemented,” CEO of Openmind Group of Companies Oleksiy Kovalenko said at a press conference at Interfax-Ukraine.

He focused on the fact that the refusal to use antibiotics in agriculture, including the production of chicken meat, is impossible without appropriate government support and amendments to the legislation.
“We urge everyone to support this petition so that it has 25,000 votes and becomes mandatory for consideration,” he said.
According to Kovalenko, in Ukraine, the market for antibiotic-free chicken meat is still estimated at only 2%.

PrJSC Volodymyr-Volynsky Poultry Farm is a Ukrainian-Dutch enterprise, part of the Openmind group of companies. The factory’s infrastructure includes 100 poultry farms, a processing workshop and a feed mill, as well as land for planting fodder crops.
The company is certified under ISO 2200:05 and is implementing HACCP principles in production of raw materials and finished products.
At the end of 2017, the poultry farm launched a unique product on the Ukrainian market – chicken meat without antibiotics and growth stimulants under the Epicurus brand, and in 2019 began the construction of a new meat processing workshop worth EUR 38 million.

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UKRAINIAN PM PROPOSES SETTING UP FUND OF HUMAN CAPITAL DEVELOPMENT FOR IT SECTOR

Premier of Ukraine Oleksiy Honcharuk has proposed setting up Fund of Human Capital Development for IT sector to enable it manage sector on its own. “The problem in the lack of staff…We hope to establish conditions for the sector to work faster,” Honcharuk said during the meeting of the government with export IT industry in Kyiv on Wednesday.
According to the premier, the means of this fund will be forwarded for scholarships of talented students, grants for young scientists and the creation of educational infrastructure.
Head of State Tax Service Serhiy Verlanov reported that a special taxation option for individuals in IT sector should be introduced.
In addition to the 5% single tax, 1.5% military tax and unified social tax from two minimum wages, the head of the service suggests introducing a tax on the development of human capital. It will be administered by the tax service and transferred to sector managed-by fund, and its rate will be gradually raised from 1% in 2020 to 5% in 2024.
According to Verlanov, this taxation option will give more guarantees and advantages, however, the transition to it is voluntary, and those who wish can stay on today’s third form of simplified taxation.
The premier has said the government expects that this will allow in 10 years to increase the export of the IT from $3 billion up to $10 billion, the number of workers in this sphere of services will increase from 165,000 to 650,000 people.

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